If Yahoo is for sale who should buy?

Just 10 years ago yahoo was the leader in internet world with email, yahoo messenger, search engine etc.

Apparently, today’s reality is different, yahoo is far behind in the race with it’s competitors and no much value for yahoo’s share in Wall street. sometimes sustenance is much difficult than success, though New York Times showed up that majority of the news readers switching to mobiles and social networks to read the news, Yahoo ignored and attempted to be a media company and their rivals started creating platform to consume news. This is another classic example that if you don’t meet the customer needs you will be vanished soon.

If the product/service is not upgraded per customer need, you will be downgraded.
by Narasimha Mohan

Yahoo sensed that something is going good in social network space much earlier than Google did, and made acquisitions like flickr and Delicious. Again lack of right vision they didn’t get succeeded, without a vision no business would survive for longer time. Big or small if a business fails the effect would be equal.

Yahoo is the wrong example for the acquisitions and vision why?

  • Rejecting the offer to buy from Google twice.
  • Quoting low for Mark Zuckerberg (CEO, Facebook) offer to buy.
  • Not responding to Microsoft offer of $44bn.
  • Acquiring Tumblr for $1.1bn.

One great thing that Yahoo did is investing in Alibaba which grown up as an eCommerce giant in China. Current worth of Yahoo is almost equal to the worth of it’s stake in Alibaba.

Well, Who should buy Yahoo?:

Microsoft may not come forward as the situation is not the same as in 2008, There won’t be a big value add to Google as 95% of Search engine market share is already with it. The social giant Facebook is already grabbed a major share in advertisements and news feeds.

My answer is Twitter. Though Twitter is good but compare to its rival the market share is still low. How does it works?

  1. Another set of customer base can be added.
  2. Twitter can utilize the expertise of Yahoo in Media and Advertising.
  3. Twitter can take the advantage of yahoo news.
  4. Tumblr is another big advantage as they can integrate chat, blogging and other features of Tumblr.

Let’s wait and see how the game tuns out.


Originally published at www.saranmok.com on March 12, 2016.